European Fund for Southeast Europe IV/V

Location:

Regional

Project number:

47357

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Target board date:

30 Sep 2015

Status:

Disbursing

PSD disclosed:

19 Aug 2015

This is a PSD disclosure for Projects 47357/47358.

Project Description

The EBRD is providing an operation in favour of the European Fund for Southeast Europe (EFSE or the “Fund”), an investment company with variable capital (“SICAV”) incorporated in the Grand Duchy of Luxembourg. The operation will consist of the investment of EUR 20 million in B shares and EUR 20 million in A shares (or the USD equivalent amount thereof) of the Fund. The operation will enable the Fund to continue providing medium to long-term funding to qualified financial intermediaries, for on-lending to micro, small and medium-sized enterprises (“MSMEs”) and for rural, housing and agricultural finance in Southeast Europe (SEE) and the European Neighbourhood Region (ENR).

Transition Impact

Transition Impact of the proposed investment will derive from:

(i)         Increased financial intermediation and improved access to finance: The proposed investment will continue support EFSE as a useful vehicle for financing MSMEs through financial intermediaries in the SEE and ENR.

(ii)        Support to markets: The investment will help the Fund attract new commercial and private funding with a focus on MSME lending by helping maintain the cushion for private note holders and provide comfort for their investment.

(iii)       Enhancing business standards and practice: EFSE’s technical assistance is tailored to the specific needs of partner institutions and will contribute to the improvement of corporate governance, business practices, and operational efficiency, which will be duplicated by other participants in the financial sector. EBRD will continue engage in dialogue with EFSE to promote local currency lending where possible.

The Client

The Fund was promoted by KfW and established with the support of EBRD and other international financial institutions (IFIs) in December 2005 to provide loans to financial institutions for on-lending to MSMEs. The Fund is managed by Oppenheim Asset Management Services S.a.r.l., (OPAM), a wholly-owned subsidiary of Deutsche Bank since 2010 with investment operations delegated to Finance in Motion GmbH, Germany, (FIM), an alternative investment management company established in 2010 by development finance professionals and Sal. Oppenheim and currently managing four dedicated development funds.

EBRD Finance

Investment of EUR 20 million in B shares and EUR 20 million in A shares (or the USD equivalent amount thereof) of EFSE.

Project Cost

Total of EUR 40 million (of which EUR 20 million can be in USD equivalent amount)
 

Environmental and social categorisation, impact, and mitigation

Categorised FI. European Fund for Southeast Europe (EFSE) is an existing client of the Bank and has environmental and social requirements in its Social and Environmental Policy dated 14 November 2008.  These policy requirements form part of its Investment Guidelines and are consistent with EBRD and other IFI shareholder E&S policies. EFSE is implementing the E&S requirements contained in the Fund's Investment Guidelines in a satisfactory manner. EBRD also has direct exposure to many of the institutions which have received financing from EFSE and who are required to implement the relevant EBRD E&S requirements.  Many of these have received ES due diligence training from the EBRD. All of the EBRD’s local partner lending institutions (PLIs) have provided satisfactory annual reports to the EBRD on implementation of the E&S requirements.

Technical Cooperation

None.

Company Contact

Sylvia Wisniwski, Managing Director

Finance in Motion GmbH

Theodor-Stern-Kai 1, 60596 Frankfurt/Main, Germany

t: +49 (0) 69 977 876 50-50

f: +49 (0) 69 977 876 50-10

s.wisniwski@finance-in-motion.com

http://www.finance-in-motion.com

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.